Adding Index Codes and Rates

The Index Rate - New/Details window lets you add and maintain index codes and the rates and descriptions associated with the index code used for Variable Rate Index Processing. The Variable Rate Index Processing check box must be selected on the Credit Union Profile - Loans tab to use the Index Rate Information window.

How do I? and Field Help

To add a new index rate and description, click New on the Index Rate Information window. On the Index Rate – New window, complete the followings steps to add a new index rate:

1. Enter the credit union-defined code associated with the index rate in the Index Code field (Length: 3 alphanumeric).
2. In the Index Description field, enter the credit union-defined description for the associated index rate (Length: 30 alphanumeric). This is the name of the index that will print on the ARM disclosure (e.g. SOFR index).
3. Enter the credit union-defined index rate in the Rate field. The rate will used with the margin on the Adjustable Rate Information dialog box to determine the new rate that the loan is eligible for. The index rate can be equal to or greater than zero but less than 36.500. The Prior Rate field displays the previous credit union-defined index rate associated with the index code used during index rate change processing. This field is for informational purposes only. When adding a new index code and rate, the Prior Rate field will remain at 0.000. When changing an existing index rate, the value from the Rate field will move to the Prior Rate field. The interest rate can be equal to or greater than zero but less than 36.500.
4. In the Source field, enter the source where the index rate is obtained from (e.g. Wall Street Journal) (Length: 30 alphanumeric). This information will print on the ARM disclosure.
5. From the Frequency drop-down list, select how often the index source is published. The frequency will print on the ARM disclosure. No frequency will print on the disclosure when the frequency selected is None. The valid values are:
   1. N – None. System default.
   2. D – Daily
   3. W – Weekly
   4. B – Bi-weekly
   5. E – Semi-monthly
   6. M – Monthly
   7. Q – Quarterly
   8. S – Semi-annual
   9. A – Annual
6. Click the Published down arrow to select the date when the index source was published from the pop-up calendar or enter the date in MM/DD/YYYY format. This date is not required for ARM disclosure reporting. It is a credit union-defined date that may be used to distinguish between indexes from the same source.
7. If necessary, enter the description and amount of any manipulations or other adjustments to the index in the Description of other adjustment(s) to the index for ARM Disclosures fields (Length for each field: 75 alphanumeric). This information will print on the ARM disclosure.
8. Click Save to save your changes to the index rate.

Click Cancel to close the window without saving your changes.

The Last Activity group box indicates the last date the index code was updated, the teller that performed the last add, change, or delete on the index code, and the branch of the teller that performed the last add, change, or delete on thr index code.

The information entered in these fields will be used in producing the ARM Disclosures for closed end Adjustable Rate Mortgages secured by a principal dwelling (467 and 468 Reports). When the ARM Disclosure is produced, the values from the Index Rate – New/Details window will print in a section on the disclosure with wording similar to the following:

We calculated your interest rate by taking a published “interest rate” and adding a certain number of percentage points, called the “margin”. Under your loan agreement, your index rate is the 1-year Prime Rate and your margin is 2.250%. The Prime Rate index is published daily in the Wall Street Journal. We use the Prime Rate plus 2.5% rounded to the nearest one-eighth of 1 percentage point (0.125%).

The Portico – Rate Change – Loans – Index Rate New – Maintain security permission included in the Portico – Tools – Rate Change security group controls access to the Index Rate – New window. Users must be assigned to this security group or you can add the permission to a credit union-defined security group using the Security Group Permissions – Update window.

To view or maintain the details for an existing index rate, click the icon in the Details column on the Index Rate Information window. Click the left and right arrows to scroll through the index codes, or enter an index code and click the green arrow.

The following permissions included in the Portico – Tools – Rate Change security group control access to the Index Rate – Details window.

• Portico – Rate Change – Loans – Index Rate Details – View Only
• Portico – Rate Change – Loans – Index Rate Details – Maintain

Users must be assigned to this security group or you can add the permissions to a credit union-defined security group using the Security Group Permissions – Update window.

General Ledger Effects: none

Related Reports:

• Audit Trail Report 990
  Any additions, changes or deletions to the Index Rate - New/Details window will be displayed on the Audit Trail Report 990 and print on the audit trail printer with transaction code 076.
• Initial ARM Disclosure Notice (467 Report)
• Recurring ARM Disclosure notice (468 Report)
  The information entered in some of these fields will be used in producing the ARM Disclosure notices for closed end Adjustable Rate Mortgages secured by a principal dwelling.